Recessions are Fueled by Government

                 

Economic cycles are normal, but excesses have man- made, governmental causes.

                                       

Folks are constantly misled on this subject by the media and politicians.

                   

The current financial mess started as a result of a concerted government policy of making home mortgages available to those who could not afford to repay those mortgages.

                   

Government pressure, and threats of law suits from “do-gooders,” in addition to the opportunity for profit by banks, who collateralized the mortgage obligations (CDOs) facilitated the problem.

                   

Government-licensed rating agencies gave these CDOs the AAA ratings that assured the global sale of the securities.

                   

A bubble resulted from this man-made series of pressures, until, like all bubbles, it burst.

                   

To add to the bad psychology that accompanies any bust, the government came in with a series of disastrous man-made, meddling steps.(See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)